Treasury Secretary Steven Mnuchin and Mick Mulvaney, director of the Office of Management and Budget, have issued a joint statement saying the federal budget deficit reached $779B in fiscal 2018, about $113B higher than the shortfall recorded in the previous fiscal year.

The FY 2018 deficit was equivalent to 3.9 percent of the U.S. gross domestic product and $70B less than the projected shortfall in the Mid-Session Review for FY 2019, according to the statement published Monday.

Total receipts associated with individual and corporate income taxes, social insurance and retirement receipts, excise taxes, miscellaneous and customs duties increased by 0.4 percent to $3.33T in FY 2018.

FY 2018 total outlays hit $4.1T, about $127B higher than the outlays recorded in FY 2017 and $63.3B lower than MSR’s estimate.

The document listed the expenditures at several agencies in the previous fiscal year with the Department of Health and Human Services landing the top spot at $1.12T, followed by the Treasury at $629.B and the Defense Department at $600.7B.

Mnuchin and Mulvaney reported that the U.S. has created more than 4M jobs since the start of the new administration, while real wage compensation and real median household income rose by 1.4 percent and 1.8 percent, respectively.
 

David Chow, chief information officer at the Department of Housing and Urban Development, told Federal News Network in an interview published Friday that the Centers of Excellence program and the Technology Modernization Fund are part of HUD’s efforts to transform its financial profile.

The report said HUD received $5M in September as the first installment of the $20M loan approved by the TMF board.

Chow said the department will use the funds to update its mainframe technology platform and transition critical applications to the cloud.

“We are looking at completing this within 24 months, but starting in 2021 we will start realizing cost savings for anywhere from $6M to $8M a year,” he told the publication’s Ask the CIO program.

Chow noted that the department continues to implement planning and acquisition processes to select its preferred contractor.

HUD was selected by the General Services Administration in September to serve as the second host agency for the five CoEs that seek to advance information technology modernization across cloud, customer experience, infrastructure optimization, contact centers and service delivery analytics areas.
 

A hypersonic aircraft believed to be owned by the Chinese military has generated white plumes of light in the sky captured by residents in Beijing and northern regions of Shaanxi province and Inner Mongolia, Metro reported Friday.

Chinese military bloggers associated the phenomenon with the country’s hypersonic glide system, dubbed DF-ZF, that is expected to be operational by 2020.

The East Asian country’s defense ministry announced in 2014 that it was working on the aircraft, which has been tested seven times since its launch.

The report said the aircraft is built to travel at speeds of up to Mach 10 as well as carry nuclear payloads and perform precision strikes.

 

Capt. Andrew Charles, director of tactical exploitation of national capabilities for the U.S. Navy, has said the service should determine where artificial intelligence technologies apply in its operations, and where they don’t, Federal News Network reported Friday.

“I’m going to figure out where AI doesn’t belong and where it does belong in that decision cycle that takes me from finding a potential threat to engaging that potential threat somehow,” Charles said during a future naval technology panel at the Armed Forces Communications and Electronics Association Nova Navy information technology day on Oct. 1.

Charles said issues regarding AI platforms include security breaches and the inability of AI modules to make critical subjective decisions during warfare.

Kurt Wendelken, assistant commander of supply chain technology/systems integration at Naval Supply Systems Command, said whenever the topic of AI arises, people become concerned about their job security.

 

The head of cybersecurity at the Health and Human Services Department’s Office of the Inspector General recently said that he and his team are learning as much as they can about supply chain threats and application development security, to respond to such issues effectively, Federal News Network reported Friday.

Jarvis Rodgers, HHS OIG Cybersecurity and IT Audit Division director, told Federal News Network via email that his unit is aware that risks related to global supply chains “present a unique set of challenges” and that poorly written code can result in costly and persistent security vulnerabilities.

Rodgers also pointed out that even though members are located at different parts of the country, the team nevertheless seeks to promote a culture characterized by “accountability and ownership.” He said his team members understand that “they have a significant role in the cybersecurity of HHS.”

Expressing confidence in the people under him, Rodgers commented, “We feel we are well aligned to take on the challenges of the future.”

The Senate on Thursday confirmed Army Gen. Robert Abrams as the next chief of U.S. Forces Korea in a series of approvals for Defense Department nominees in the upper chamber, Stars and Stripes reported Friday.

Abrams, who has led Army Forces Command since 2015, will also serve as commander of United Nations Command and Combined Forces Command.

Vice Adm. Craig Faller, formerly senior military assistant to Defense Secretary James Mattis, was also confirmed as head of U.S. Southern Command.

The upper chamber also approved Thursday the nomination of U.S. Air Force veterans Robert McMahon and James Stewart to assistant secretary roles at DoD.

Stewart, a retired Air Force major general, will focus on manpower issues at the Pentagon.

The report said McMahon, who previously served as assistant defense secretary for logistics and material readiness, will oversee DoD’s sustainment issues.

Vice Adm. Andrew Lewis, who has served as deputy head of naval operations, has been confirmed commander of the 2nd Fleet, according to the report.

A recent study has revealed that, on average, roughly half of federal government employees consider workforce training and development to be the most critical element in achieving information technology modernization at their respective agencies.

The study, which was conducted by the American Council for Technology-Industry Advisory Council in partnership with news organization MeriTalk, surveyed finance, IT and procurement decision-makers from federal civilian and defense agencies concerning a variety of issues related to IT modernization.

The study defines IT modernization as “building a more modern and secure architecture for Federal IT systems to improve citizen-facing services, make better use of emerging technologies, and improve security across the Federal enterprise.”

According to the survey, 53 percent of IT respondents said that providing workers with the necessary training was key to achieving IT modernization, while 50 percent of procurement respondents and 49 percent of finance respondents held the same opinion.

Nevertheless, only 28 percent of respondents, on average, felt confident about the efforts their agencies have taken to equip employees with the requisite knowledge and skills.

Subsequently, the study recommended that agency chiefs work with their respective human resource departments to “effectively prepare employees for the future of government IT.”

Sens. Maria Cantwell, D-Wash., Tammy Duckworth, D-Ill., Tammy Baldwin, D-Wis., and Gary Peters, D-Mich., are supporting Sen. Ron Wyden, D-Ore., new bill aiming to help secure elections from cyber threats. The Protecting American Votes and Elections Act of 2018 would require U.S. federal elections to employ physical paper ballots and undergo post-voting audits to limit risks, Wyden’s office said Thursday.

“We have seen undeniable evidence that adversaries interfered in our 2016 elections and are planning similar efforts in the future,” said Sen. Peters. “I’m proud to join my colleagues in cosponsoring this bill to help secure our elections and strengthen faith in our political system.”

The addition of the four senators to bill’s support comes a month before the upcoming U.S. elections.

Wyden, along with five other Democratic party senators, originally introduced the bill in June this year.